- From business idea to business model
- Attributes of good business models from the perspective of professional investors
- Ways to think about developing good business models
- A brief introduction to business financing, aiming at maximizing a business' long-term value: equity, debt, mezzanine: pros/cons., implications, etc.
- Valuing businesses: which method is right for which sort of business type?
- Brief explanation of the workings of financial reporting (what do key financial metrics mean, where are they reported, and what is the underlying logic of financial reporting)
- Valuation discussion: from mature businesses to start-ups. What is the most appropriate valuation method and how do they reconcile?
- Key focus will be on EV/EBITDA, P/E, DCF
- Introduction to the workings of professional investors, especially Venture Capitalists and Private Equity investors (funds, family offices, business angels, private investors, holding companies, etc.)
- How investors make money in the different phases of investing: Seed, Growth, LBO/MBO, IPO, etc.
- Deal-making in practice: investment process, pre/post-money valuation, dilution, typical clauses in Shareholder Agreements
- Practical examples: how does the valuation of famous Unicorns reconcile with traditional valuation methods?
- Is Uber overvalued?
- Did Facebook overpay for WhatsApp?
- (Cases may be adjusted, according to actual newsflow)
At the end of this learning unit, the student is able to :
Having regard to the LO of the programme X, this activity contributes to the development and acquisition of the following LO:
The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Due to the COVID-19 crisis, the information in this section is particularly likely to change.The course is given in an auditorium. Speakers are regularly invited and debates are organized on this occasion.
Due to the COVID-19 crisis, the information in this section is particularly likely to change.The final grade will consist of two parts. The first one will be based on short essays and class presentation of relevant case studies. The second part will be an individual essay on a topic on entrepreneurial finance that students can select themselves. There will be no written exam. However, students need to present their topic to the instructor during the exam session. This will take the form of an oral exam, which will cover the topic of the individual essay as well as any material covered in class that pertains in one way or another to the selected topic. Case studies will be done in small groups (the size of groups will depend on the number of registered students). Groups have to be formed before the end of the second week. Students have to hand in a written report on some of the cases. Reports should be typed (with a maximum of 3 pages for each report ' any additional material should be put in Appendix if relevant) and handed in personally; you cannot hand it in through e-mail. Only one report is needed for each group. Make sure that all names and student numbers are on the front page of the reports. When presentations are done, a copy of PowerPoint presentations must be provided to the instructor (printed handout at the day of presentation, and before your presentation). For deadlines, see the detailed Lecture Plan provided below.